Invoice scam one to watch
Business owners are often the targets of phony invoice scams. The Better Business Bureau recently unearthed a questionable invoice scheme that appears to be sweeping the country. Businesses in Colorado, New Hampshire, Nebraska, Ohio, Tennessee, Texas and other states have contacted their BBBs to ask about an organization calling itself the Regional Chamber of Commerce.
Businesses state that they have received invoices, through the mail and by fax, from the Regional Chamber of Commerce. Representatives from the Regional Chamber have called some local businesses, identifying themselves as “your Chamber of Commerce” and asking to verify contact information.
The Regional Chamber subsequently mails an invoice for $389 to the business, without the prior knowledge or consent of anyone at the business. The Regional Chamber claims that paying the invoice will entitle businesses to medical benefits, office product discounts and other savings. Many businesses are confused about whether the invoice is for their own local Chamber membership or for U.S. Chamber membership.
The invoices sent out by this company do not state they are sales solicitations, as required by the U.S. Postal Service. Furthermore, the unsolicited faxes businesses have received violate the regulations of the Federal Communication Commission.
The best protection against phony invoices is knowledge and vigilance. It is recommended that businesses:
• Alert their accounting department or bill-payers to be on the lookout for disguised solicitations and to carefully review invoices from companies and organizations with which they do not normally do business.
• Establish effective internal controls for payment of invoices.
• Verify all invoices with the person who gave written or verbal authorization.
• Clear all invoices with the appropriate financial staff.
The fact con artists mail thousands of phony invoices, and solicitations disguised as invoices, on a regular basis, points to an annual loss to businesses that may run into billions of dollars. Always check any unknown company or unfamiliar invoice with the Better Business Bureau before making a purchase or payment.
For more information on business scams, your local BBB can be contacted at (615) 867-0032 during regular office hours.